New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-08-02
HILL REMOVED AS TRUSTEE;
PREPARING TO SUE HIS STOCK BROKERS
HOW WERE THE LorrrNxR BONDS srcuRrpsi
LONG AND COSTLY LITIGATION IN pRospEcr.

LONG AND COSTLY LITIGATION IN PROSPECT
In the case Of Jerome L. Hill. who is accuscd n
misappropriating s250,0o0 railway bonds belong
to the estate Of William Lottimcr In q vain en-
deavor to stop his losses In stock speculations
there were q few interesting developments yester
day. Mr.. Hill was removed from his position az
trustee and executor; the three Stock Exchange
firms with whom the bonds were placed as mar
gin engaged counsel to resist the demand for the
recovery Of the bonds made by the counsel of the
estate; 1t leaked out that there were unexplained
peculiarities In the methods by which Hill OBJ
tained access to the securities, and decided
difference Of opinion was found with regard to
MIR. Hills prominence as an operator
James Thompson of Foster & Thompson, tho
counsel for the estate. went before the Surrogate
In the morning with petition setting forth that
MIR. Hill had unlawfuly and improperly taken and
used securities belonging to the estate and praying
for his removal as trustee and executor. The
decree was issued Mr.. Thompson said that this
action was taken in behalf Of the other executors
and trustees, William A. Lottimer the son of the
dead drygoods merchant, and John Bloodgood, the
broker, in order to simplify the litigation that is
inevitable and prevent any complications that
might arise out of possible fight of Mr.. Hill.
MIR. Thompson expressed the intention to begin at
bonds that had passed into the hands Of the
Stock Exchange firms, Work, OKecfe g Co.,
Lockwood Crossman and /. b. Newcombe g. Co.
1t was learned elsewhere that the action would
probably be begun to-day. Mr.. Thompson de-
clned to give any idea of the ground which
the litigation would be based. lie expressed the
utmost confidence that the estate would be able to
make itself whole but he frankly admitted that
it would probably be only at the end of a long
and costly contest 1t will be one that will be
watched with great interest by Wall Street, as
the general opinion is held that there can be no
recovery Of securities received in good faith by
any stock broker. The friends Of the Lottimcr
estate, however, wear an air of confidence which
may be due to their knowledge of facts which
the lawyers deem it unwise to make public before
they become part of the litigation.
Considerable speculation was INDUCED In yes
terday over the question of how Mr., Hill obtained
possession of the bonds, taking them as he did
at different times from box in the custody OF
the Mercantile Safe Deposit Company. That box
could be opened only by the use Of two keys, one
of which Mr.. Hill possessed while the other
held by John Bloodgood, one Of the trustees and
brother-in-law Of William A. Lottlmer, the third
trustee. Mr.. Bloodgood claims that since No
vember last, when Hill is known to have begun
his abstraction Of bonds, his own key has not
been out of his possession. How then could Hill
with only one key, where two keys were needed,
open the boxp The difficulty of obtaining o
duplicate OF Mr. Bloodgood's key is obvious, and
the supposed to be taken by the Safe Deposit
Company were features that puzzled people in
seeking to answer this query, and the friends OF
the estate were reticent on the subject for fear
it might later become feature of the litigation.
Lyman RhOades, president Of the Mercantile
Safe Deposit Company, was seen by a TRIBUNE
ron hufb ba areJ hat be only knew Of
the case by reading the papers. With regard to
customers, Mr. Rhoades stated in general that
the company did not know when they visited
their safes or boxes as, when they were recorded
ON the books Of the company, they were free to
come and go as they chose during regular hours.
When asked il Mr.. Hill had right of access to
the Lottimer securities or had his name on the
hooks of the company, Mr. Rhoades declined to
answer. Later in the day he wrote to THE
TRIBUNE denying that the safe, from which
the property extracted was in our (thelrI
vault" Mr.. Rhoades says that "the parties in
question had no safe with the company adding
/" AS there some points in the case which might
reflect upon the management of the Safe Deposit
Company where the property was located, we ask
this correction at your hands in justice to our
selves"
The three Stock Exchange firms which will be
sued by the Lottimer estate, yesterday placed
their case in the hands of counsel, Work, Okcefc
~ 20. engaging eAJuStiCc rOdu DdNio, loeh""VA
& Crossman Robinson, Scribner Bright, and
l. B. Newcombe q Co retaining Butler, Stllman
a. Hubbard. The lawyers interested were out OF
town when called on yesterday. Mr. NewcomDe
said mo, we have not surrendered the bonds;
we have been too long in Wall Street to do
business that way. The bonds were received by
us in good faith, and we had no reason to suppose
that they had not come properly into the posses
sion Of Mr.. Illl.'
1T is said that little inquiry would have
shown that Mr.. Hill had only moderate means,"
was suggested.
why did not the estate require any bonds
from Mr. Hill ?n Mr.. Newcombe retorted.
MIR Lottimcr had SO great confidence In
probity."
"Woi, I think that is the best answer can
give to your query,s said Air. Newcombe with
smile.
The other firms take the same ground, that
Mr. IIiIrs reputation and reputed wealth forbade
any suspicion that what he put up as margin
had reached him improperly Samuel j. Oheeie,
of Work. OKeefe s. Co., said that Hiii hau Deen
introduced to them by friend who knew nm
MS q large trader. Soon after going INTO business
Mr. O'Keefe suggested to Mr. i'll VI that he give MS
firm few orders when he cOulI. He promised
to do so,D said Mr.. O'Keefe, and one day no
deposited ten Missouri Pacific Consolidated bonds
as margin, saying that hc wanted 10 open an
account He gave order to buy 500 shares
of Western Union, and subsequently he came ire
qucntly 10 MS oiice. iic he'Si """N ".'
of his transactions in other Offices, and by MS
omen talk he led everyone in our office to believe
he was n wealthy man. We accepted the bonds
he deposited in perfect good faith, and we are
sure of our own position in the matter"
1T was stated yesterday that Hill was so frank
in his talk about his operations that he was
cautioned by some OF his brokers not to speak SO
freely, as certain large operators might hear OF
his position in the market and gun for him. In
order Ito shake him out" that is, force him 10
liouidate Hill always professcd confidence In his
stability and whenever advised to reduce bis lines
Of long stock was prompt in putting up additional
marcin. His downfall is understood to have
resulted finally from his persistent ealing OF
Western Union on the idea that the Ives-Balti-
more and Ohio deal was bound to go through. But
outside OF the immediate circle of his brokers
Offices he was not known large trader. He
frequently went into the office OF John Blood
GOOD A. Co and occasionally they executed orders
aQQ SLaEaS Of